Caveat Emptor

 I had read an e-book, Thinking Fast and slow and I have read it in preparation for my Toastmaster speech before. Only then, several months past that particular speech, that I came across this video and cursed myself for falling into cognitive fallacies that I once told others to be wary of. Now, as a cool-down period of my purchase of silver-lake axis and remorsefully looking at the share performance of Hyflux and Raffles Medical, I decide to do some stoic meditation and reflect on the triumphs and mistakes I made so far. 1) I need to find a wife and getting her pregnant to continually have kids. So that when I lose a kid, I will be sad for a while. Then I get her pregnant again and have another kid. This is by far the greatest opener in the video so far. Jokes aside, Life is not all about investing and I need to find some filler to tide through this long investing marathon ahead. Maybe I should get a girlfriend, coax her to be my wife, get her pregnant, so that when I lose

Why did Buffet buy IBM 1) vendor stickiness of services 2) vast global customer base, allowing it to thrive regardless of how technology evolve 3) management ability , divesting low margin business, growing high margin business (consulting , outsourcing) 4) favourable long term prospects at that point of time (outsourcing processes 52%, largest systems and it integration consultant,) 5) management financial management ability, use debt wisely, made value adding acquisition from cash, share buyback 6) technology services companies are less prone to cyclical shocks and growth is more stable , growth industry ,highly dependent on discretionary budget of clients for it services 7) IT outsourcing has Moat like qualities as it is core for technology driven firms (utility) . Switching costs and scale advantages discourage Why did Buffet sell one third of his stake at IBM 6 years later 1) tough competition 2) new disruptive technology (cloud computing) bring great profits for ibm, bu

SilverLake Axis Links 1) http://www.straitstimes.com/business/companies-markets/silverlake-axis-reports-lacklustre-q4-earnings 2) RHB Investment report 17 May 2017 3) http://www.silverlakeaxis.com/img/pdf/Silverlake%20Axis%20Ltd%20Executive%20Report%206%20Jan%202016.pdf Decision to Buy - Company is relatively undervalued compared to peers, PE, Free cash flow, P/BV, profit margin perspective. Price is driven down due to speculative attack. There is no consensus to identify how much technology (Cyclical) companies are worth, but using my EPS model, This share intrinsic value is around 1.29701. This is not necessary reliable and I discounted the 2016 sharp increase in assets from disposal of its GIT shares to normal amount. Untapped Debt Capacity grants greater financial leverage. Good cash flow to support its building up years and acquisitions without heavily resorting to debt, especially in these 2 years of impending interest rate hikes. Growth company that is expect to ben

1) Signed up for May-bank Share-builder plan. Will be going down to their branch tomorrow to setup the share-builder plan (300SGD /month STI ETF) and GIRO DDA Linkage. 2) I have to sell off all of my shares in Philips share-builder plan before I can close off the account. I have suspended the GIRO payment. Transfer to CDP or Maybank account is too expensive and not cost effective. 3) I have successfully sold off my 100 shares of OCBC  (price 11.19) in the main market and 25 shares (price 11.16) in the unit share market. I have earned 19% returns (stopped DCA early). My initial hypothesis that the r ecession will be elongated was wrong and I successfully bought at market low and DCAed from $7 to $10.40 before I stopped the DCA. I didn't build up a sizeable position then due to risk aversion and limited cash flow.   Still, I made a sizeable profit which I realised now.  Why Sell OCBC i) OCBC is no longer cheap and the meat is all gone ii) Migration from Philips to Maybank / CDP

SilverLake Axis Sources 1) http://sgyounginvestor.blogspot.sg/2015/12/reflection-on-silverlake-axis.html 2) https://sg.finance.yahoo.com/news/silverlake-axis-ltd-why-did-080000700.html 3) http://fifthperson.com/12-things-i-learned-from-silverlake-axis-agm-2015/ 4) https://apenquotes.wordpress.com/2015/11/12/silverlake-axis-whats-behind-the-numbers/ 5) http://whatsbehindthenumbers.blogspot.sg/2015/06/silverlake-axis.html#comment-form Types of acquisitions and reasons 1) ATM Front End Processing for banks and front end sales management system 2) Silverlake Banking Systems Solution allows integrated end to end universal banking solutions through Silverlake Integrated Banking Solution (SIBS) – The one used at OCBC 3) Silverlake Japan which provides outsourcing services for credit cards systems and operations for many countries. 4) Structured Services Business (SSB) , and QR Tech . SSB contributes in application maintenance service portion to user of SIBS where